Can I retire at age 40 with 497,000?

Use the below retirement simulation to view the chances of a successful retirement.
About Your Retirement ?
Current Age
Retirement Age
Current Savings $
Annual Deposits $
Annual Withdrawals $
Stock market crash:
Portfolio ?
% in Stocks:
% in Bonds:
% in Cash:
Modify Stock Returns:
0%
Modify Bond Returns:
0%
Modify Cash Returns:
0%
Modify Inflation:
0%
How much money do I need to retire?

This retirement calculator runs simulations based on past data from the S&P 500, 10 Year Treasury Bond, 3 month T-Bill, and US inflation. For each year of each simulation, a random return and inflation amount is chosen.

How to use: Enter your current age and the age when you retire. Then enter your current savings, the amount that you can save annually before you retire, and the amount that you plan to withdraw after retirement. Your annual deposits and withdrawals take inflation into account. For example, if you need $50,000 to live on in retirement using today's dollars, we will automatically take into account the cost of living for your retirement years. The same is true for your annual deposits. Next, decide if you'd like to simulate a stock market crash.

In the portfolio section, choose the makeup of your portfolio with stocks, bonds, and cash. Cash assumes that your money is stored in a savings account. You can then alter the future returns and inflation. For example, if the market has historically returned about 10%, but you think the future will be worse, modify the stock returns by -3%, and the future returns will average out to 7%. Investment fees can also lower stock market returns. Many index funds and ETFs offer extremely low fees and expenses.

Many people receive income in retirement, such as social security, pension plans, part time jobs, annuities, and other benefits. This would allow you to take out smaller distributions every year. Please note that taxes must also be considered, but are not used in this simulation. A 401k, Roth IRA, and Traditional IRA are taxed differently than a standard investment account, as are dividends.

Note: This assumes that the future is at least somewhat like the past. In reality, anything could happen. The Soviet Union collapsed, Japan's Nikkei Index is still well below its 1989 peak. Numerous other markets have changed drastically and never recovered. However, this online tool is helpful in retirement planning and estimating how much you might need for retirement, especially those hoping to retire early. We recommend receiving advice from a financial planner.

Want to retire with $497,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%15.9%
1 years$41,042$40,676$40,320$39,971$39,631$38,673
2 years$20,318$19,939$19,573$19,217$18,872$17,913
3 years$13,411$13,031$12,665$12,313$11,973$11,042
4 years$9,958$9,579$9,217$8,870$8,539$7,644
5 years$7,887$7,510$7,153$6,813$6,492$5,635
6 years$6,506$6,132$5,780$5,449$5,137$4,319
7 years$5,521$5,150$4,803$4,480$4,177$3,399
8 years$4,782$4,415$4,074$3,758$3,466$2,726
9 years$4,207$3,844$3,509$3,201$2,918$2,217
10 years$3,748$3,388$3,059$2,759$2,487$1,823
11 years$3,373$3,016$2,693$2,401$2,139$1,511
12 years$3,060$2,707$2,390$2,106$1,853$1,261
13 years$2,796$2,446$2,135$1,860$1,616$1,059
14 years$2,569$2,224$1,919$1,651$1,417$892
15 years$2,373$2,031$1,732$1,472$1,247$755
16 years$2,202$1,864$1,571$1,318$1,102$640
17 years$2,051$1,716$1,429$1,184$977$545
18 years$1,917$1,586$1,305$1,067$869$464
19 years$1,797$1,470$1,194$964$775$397
20 years$1,689$1,366$1,096$873$692$339
21 years$1,592$1,272$1,008$793$619$290
22 years$1,503$1,188$929$721$555$249
23 years$1,423$1,111$858$656$498$214
24 years$1,349$1,041$793$599$448$183
25 years$1,281$977$735$547$403$158
26 years$1,219$918$682$500$363$136
27 years$1,161$864$633$458$327$117
28 years$1,108$814$588$419$295$100
29 years$1,058$768$548$384$267$86
30 years$1,012$725$510$353$241$74
31 years$968$686$475$324$218$64
32 years$928$649$444$298$197$55
33 years$890$614$414$274$178$48
34 years$854$582$387$252$161$41
35 years$821$552$362$232$146$35
36 years$789$524$338$214$132$30
37 years$760$498$317$197$120$26
38 years$731$473$297$181$109$23
39 years$705$450$278$167$99$20
40 years$679$428$261$154$90$17
41 years$656$407$244$142$81$15
42 years$633$388$229$131$74$13
43 years$611$370$215$121$67$11
44 years$591$352$202$112$61$9
45 years$571$336$190$103$55$8
46 years$552$321$178$96$50$7
47 years$534$306$167$88$45$6
48 years$517$292$157$82$41$5
49 years$501$279$148$75$37$4
50 years$485$266$139$70$34$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $497,000, adding $4,085 every year, while hoping to spend $37,734 every year in retirement. These numbers increase with inflation.
Reality usually performs much different than the expected returns. This uses historical averages, but anything can happen. In general, riskier investments have greater returns on average, but more volatility in the short term.
Age Total: 100% Stocks Total: 100% Bonds Total: 100% Cash Total: 61/34/5 Blend
39$497,000$497,000$497,000$497,000
40$551,908$525,567$517,863$584,873
41$568,054$511,171$495,063$592,988
42$584,582$494,805$470,234$597,080
43$601,491$476,332$443,269$600,570
44$618,780$455,609$414,055$603,399
45$636,444$432,482$382,474$605,505
46$654,478$406,791$348,404$606,820
47$672,874$378,364$311,716$607,270
48$691,624$347,020$272,275$606,780
49$710,715$312,569$229,941$605,265
50$730,133$274,810$184,569$602,636
51$749,859$233,528$136,004$598,798
52$769,872$188,499$84,089$593,648
53$790,149$139,484$28,655$587,075
54$810,658$86,233$0$578,962
55$831,367$28,480$0$570,809
56$852,235$0$0$562,590
57$873,219$0$0$565,380
58$894,265$0$0$578,847
59$915,316$0$0$592,295
60$936,303$0$0$605,679
61$957,152$0$0$618,946
62$977,775$0$0$632,039
63$998,076$0$0$644,891
64$1,017,946$0$0$657,428
65$1,037,262$0$0$669,566
66$1,055,886$0$0$681,213
67$1,073,663$0$0$692,263
68$1,090,421$0$0$702,599
69$1,105,966$0$0$712,091
70$1,120,083$0$0$720,593
71$1,132,532$0$0$727,942
72$1,143,043$0$0$733,957
73$1,151,319$0$0$738,436
74$1,157,027$0$0$741,155
75$1,159,798$0$0$741,864
76$1,159,221$0$0$740,287
77$1,154,841$0$0$736,115
78$1,146,152$0$0$729,008
79$1,132,592$0$0$718,586
80$1,113,539$0$0$704,432
81$1,088,304$0$0$686,078
82$1,056,122$0$0$663,012
83$1,016,147$0$0$634,661
84$967,442$0$0$600,396
85$908,970$0$0$559,517
86$839,583$0$0$511,251
87$758,013$0$0$454,744
88$662,856$0$0$389,051
89$552,559$0$0$313,127
90$425,409$0$0$225,817
91$279,508$0$0$125,845
92$112,763$0$0$11,801
93$0$0$0$0
94$0$0$0$0
95$0$0$0$0
96$0$0$0$0
97$0$0$0$0
98$0$0$0$0
99$0$0$0$0
100$0$0$0$0